On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity. 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. View transaction list i No 1 2 Transaction a. b. View journal entry worksheet Treasury stock Cash Cash General Journal Paid-in capital, treasury stock. < Required 1 Required 2 > Debit 125,000 31,000 $ 720,000 216,000 864,000 $ 1,800,000 Credit 125,000 6.000 Show less
On October 10, the stockholders' equity section of Sherman Systems appears as follows. Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity. 1. Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. 2. Prepare the stockholders' equity section after the October 11 treasury stock purchase. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare journal entries to record the following transactions for Sherman Systems. a. Purchased 5,000 shares of its own common stock at $25 per share on October 11. b. Sold 1,000 treasury shares on November 1 for $31 cash per share. c. Sold all remaining treasury shares on November 25 for $20 cash per share. View transaction list i No 1 2 Transaction a. b. View journal entry worksheet Treasury stock Cash Cash General Journal Paid-in capital, treasury stock. < Required 1 Required 2 > Debit 125,000 31,000 $ 720,000 216,000 864,000 $ 1,800,000 Credit 125,000 6.000 Show less
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:On October 10, the stockholders' equity section of Sherman Systems appears as follows.
Common stock-$10 par value, 72,000 shares authorized, issued, and outstanding
Paid-in capital in excess of par value, common stock
Retained earnings
Total stockholders' equity
1. Prepare journal entries to record the following transactions for Sherman Systems.
a. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
c. Sold all remaining treasury shares on November 25 for $20 cash per share.
2. Prepare the stockholders' equity section after the October 11 treasury stock purchase.
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Prepare journal entries to record the following transactions for Sherman Systems.
a. Purchased 5,000 shares of its own common stock at $25 per share on October 11.
b. Sold 1,000 treasury shares on November 1 for $31 cash per share.
c. Sold all remaining treasury shares on November 25 for $20 cash per share.
View transaction list
/
No
1
2
Transaction
a.
b.
View journal entry worksheet
Treasury stock
Cash
General Journal
Cash
Paid-in capital, treasury stock
< Required 1
Required 2 >
Debit
125,000
31,000
$ 720,000
216,000
864,000
$ 1,800,000
Credit
125,000
6,000
X
Show less A
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